Hot Money Monday: The most-in demand stocks on the ASX right now

Each Monday, Stockhead recaps which stocks are most heavily in demand by investors — running hot.

The analysis is based on the Relative Strength Index (RSI), a technical gauge which measures how trading momentum is affecting the price action.

A reading of 70 is seen as the level at which a company may have been overbought. If a stock has a reading of 30 or below, it could be undervalued.

Click here for a more detailed rundown of what the RSI does and how it’s used. While there’s usually a pretty good reason if a given stock is running hot (or cold), investors are also on the lookout for opportunities where the price-action has separated from fundamentals.

Here’s this week’s list:

Running Hot

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, January 17:

Scroll or swipe to reveal table. Click headings to sort.

Heating up this week was junior gold explorer Kalamazoo Resources (ASX:KZR), which shot higher on Wednesday after getting key backing from some big name mining investors.

The cornerstone investment was made by Toronto-listed Novo Resources along with Canadian billionaire Eric Sprott (who’s also a Novo director).

The company will deploy the funds to further exploration in Victoria, after it hit some huge gold grades at its Castlemaine project.

Also moving up the Hot Money ranks was fintech stock Wisr (ASX:WZR), the consumer finance platform which has made an auspicious start to 2020.

After tracking just below 15c through the second half of 2019, the stock shot above 20c just after new year, prompting a query from the ASX. Wisr attributed the move to a favourable outlook from fund manager Eley Griffiths, after one of its analysts highlighted Wisr as his top stock pick for 2020.

And speaking of fund managers, embattled investment firm Evans Dixon (ASX:ED1) also showed up on this week’s Hot Money list after finding a bit of momentum to start the year.

Despite lingering problems with its US property fund, the stock has climbed to around $1.10 from its August low of around 60c , but remains well of its 12-month high above $1.70.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, January 17:

Scroll or swipe to reveal table. Click headings to sort.

Among the new entrants on this week’s list was Mosaic Brands (ASX:MOZ), the retail company formerly known as Noni B.

Negative trading updates from stocks connected to Australia’s struggling retail sector are nothing new at this point. But Mosaic said its disappointing sales numbers over November and December were also affected by the ongoing bushfire crisis, with around one fifth of its stores directly impacted.

Looking at the Running Cold list more broadly, the number of pot stocks that populated the list in the second half of last year has started to dwindle — perhaps evidence that 2019’s cannabis bear market has begun to turn.